- Analytics
- News and Tools
- Market News
- USD/TRY: Risks remain heavily tilted to the downside for the lira – MUFG
USD/TRY: Risks remain heavily tilted to the downside for the lira – MUFG
It has been another volatile month for the lira. The lira weakened throughout most of June hitting an intra-day high of 17.445 before staging a sharp rebound at the end of the month. Economists at MUFG Bank expect the TRY to suffer further downward pressure.
TRY weakness undermining confidence in Turkiye’s public finances
“Turkiye’s banking regulator will restrict commercial lira loans to corporate borrowers if they hold more than TRY15 million in foreign currencies and if the amount exceeds 10% of total assets or annual sales. It will encourage companies to reduce exposure to foreign assets/currencies in order to access new credit in lira and the flows will provide more support for the lira. However, the new policy measures alone will not be sufficient to trigger a more sustained reversal of the lira weakness.”
“Turkiye will continue to run inappropriately loose monetary policy that has played a key role in undermining confidence in the lira. Turkiye has limited scope to support the lira through intervention reinforcing the bearish trend.”
“The Ukraine conflict has reinforced upside inflation risks, and at the same time is resulting in Turkiye recording wider current account deficits that increase downward pressure on the lira.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
